First, I've built robo-traders and you couldn't be more wrong.

Cycles are necessary to eliminate irresponsible behavior. Computers are not more responsible; they make just as many assumptions as humans and many of them are wrong. In fact, most of the ideas that crashed LTCM were developed by people with expertise in algorithmic trading.

Instead of looking at crashes as bad, see them instead as corrective cycles. We don't need a system of perfect stability - it would be boring and bad behavior would never be corrected. We need booms and busts, so that the busts destroy the bad and irresponsible.

If you're responsible, you will do well regardless of the season.